DNP Prepared Nurse Experience

CLASSMATE 1

Dr. Wyse and Class,

Planning and Executing the Operating Budget:

The DNP-prepared nurse experiences firsthand how health care is delivered, and the growing cost involved. According to Waxman (2018), patient care is more complex with the expectation that costs can be efficiently managed. There are several concerns in evaluating finances as it relates to an operating budget. To plan and execute an operating budget the DNP-prepared nurse must have a solid understanding of the billing practices of the organization, its financial state, the capacity of the organization to execute its mission, and proficiency in the delivery of services (Waxman, 2018).(DNP Prepared Nurse Experience Comprehensive Discussion Essay Example)

Controlling Cost Overruns and Overtime:

The DNP-prepared nurse leader in many settings is responsible for budgetary expenditures directly related to the delivery of healthcare. They require essential business and financial skills to be effective in their role and must be well-informed of essential financial tools to successfully manage the workforce as well as provide high-quality patient care (Rundio, 2022). Two budgetary concerns that the nurse leader must address as part of their financial responsibilities are controlling cost overruns and overtime. A cost overrun occurs when the actual project costs exceed the estimated costs, while overtime refers to any hours worked by an employee that exceed their normally scheduled working hours which is a common problem with the active nursing shortage. To address cost overruns and overtime the DNP-prepared nurse should examine cost analysis, monitors progress, and reassign resources when possible (Waxman, 2018).(DNP Prepared Nurse Experience Comprehensive Discussion Essay Example)

Explaining Variances:

According to Rundio, (2022), the personnel budget is a significant factor in the operating budget. Staffing expenses normally are the largest portion of the nursing operating budget. It is important for nurse leaders to clearly understand the financial concepts required to manage the personnel budget and address variances related to staff or supplies as necessary. Variances refer to the difference between what has been proposed for the budget and the actual results. Depending on the patient acuity and census the DNP-prepared nurse leader must be prepared to defend the variance when the census is drastically increased because of an outbreak of COVID-19 or with the recent surge in RSV for pediatric patients. Variances can be favorable or unfavorable depending on how they affect the net income (Waxman, 2018).(DNP Prepared Nurse Experience Comprehensive Discussion Essay Example)

Securing Funds for Staff’s ongoing Competency Training and Professional Development:

Staff competency training and professional development are important because Continuing professional development is key to nurses’ lifelong learning and institutes a critical aspect for keeping nurses’ knowledge and skills up to date. Competency training and professional development also have a positive impact on patient care (Mlambo et al., 2021). Securing funds for ongoing professional development not only strengthens the quality of healthcare professionals but also promotes patient safety.(DNP Prepared Nurse Experience Comprehensive Discussion Essay Example)

Reference:

Mlambo, M., Silén, C., & McGrath, C. (2021). Lifelong learning and nurses’ continuing professional development, a meta-synthesis of the literature. BMC nursing, 20(1), 62. https://doi.org/10.1186/s12912-021-00579-2

Rundio, A. (2022). The nurse manager’s guide to budgeting and finance (3rd ed.). Sigma Theta Tau International.

Waxman, K. T. (2018). Financial and business management for the Doctor of Nursing Practice (2nd ed.)

Waxman, K. T., & Massarweh, J. (2018). Talking the talk: Financial skills for nurse leaders. Links to an external site.Links to an external site.Nurse Leader, 16(2), 101-106. https://doi.org/10.1016/j.mnl.2017.12.008

CLASSMATE 2

Dr. Wyse and class,

DNP-prepared organizational leaders need to be prepared to navigate a wide range of operational concerns – particularly as it pertains to the budget. Planning and executing the operating budget is an enormous responsibility as the health of an organization’s future depends on its ability to manage financial capital (Daub et al., 2020). I work for a large health network that has absorbed several smaller organizations due to their struggles with managing their operating budget in a way that promoted financial stability and operational responsibility. It is important for DNP-prepared leaders to carefully consider the financial implications of their interventions to promote continued organizational growth and success.(DNP Prepared Nurse Experience Comprehensive Discussion Essay Example)

Controlling cost overruns and overtime are necessary measures to protect the organization’s budget and fiscal foundation for future success. Those managing the financial figures need to review financial statements to determine if adjustments in operating expenses need to be reduced to improve operating income (Terrell, 2020). If a certain line item in the budget utilizes more financial resources than was projected, leaders must consider ways to reduce other costs to balance the overall operating budget.(DNP Prepared Nurse Experience Comprehensive Discussion Essay Example)

Variances can occur when specific situations change the operating parameters of an organization. This includes the need to compensate nurses for overtime hours when patient censuses are high or when patients require a higher level of care that in turn justifies increased staff as outlined in the hospital’s policy guidelines. Again, this underscores the importance of maintaining a responsible operating budget that allows for a financial cushion should these variances occur. Variances will also provide challenging opportunities for leadership to make decisions surrounding how to supplement the organization’s revenue to balance the long-term operating budget.(DNP Prepared Nurse Experience Comprehensive Discussion Essay Example)

Organizations will grow and thrive related to the time and effort they put into their resources. One of these resources is the staff. Investing in the quality of the staff will improve the quality of the care patients receive – providing even more opportunities for growth and security (Padula et al., 2019).Investing in their ongoing competency training and professional development helps retain staff, ensure they are knowledgeable in their field, and enhance the overall organization’s character. The knowledge staff members are able to gain in their chosen field and the enthusiasm they have for their organization as a result of the organization’s investments in their careers and personal lives helps positively impact organizational culture. These positive investments help increase employee retention rates and reduce expenditures associated with hiring, orientation, and other training necessary for new employees to join the organization. As such, securing funds to promote employee education and growth is an important point of advocacy for DNP-prepared nurse leaders.(DNP Prepared Nurse Experience Comprehensive Discussion Essay Example)

References

Daub, S., Rosenzweig, C., & Schilkie, M. C. (2020). Preparing for a value-driven future. Families Systems & Health, 38(1), 83–86. https://doi.org/10.1037/fsh0000476(DNP Prepared Nurse Experience Comprehensive Discussion Essay Example)

Padula, W. V., Nagarajan, M., Davidson, P. M., & Pronovost, P. J. (2019). Investing in skilled specialists to grow hospital infrastructure for quality improvement. Journal of Patient Safety, 17(1), 51–55. https://doi.org/10.1097/PTS.0000000000000623(DNP Prepared Nurse Experience Comprehensive Discussion Essay Example)

Terrell, G. E. & “Bo” Bobbitt, J. D. (2020). Introduction to value-based reimbursement: How to get started. The Journal of Medical Practice Management, 36(2), 64–67.(DNP Prepared Nurse Experience Comprehensive Discussion Essay Example)

DNP Prepared Nurse Experience Comprehensive Discussion Essay Example

Response to Classmates

Response to Classmate 1

Hello,

Thank you for an elaborative and insightful discussion. DNP-prepared nurses have a unique skill set that considerably impacts healthcare systems. They contribute significantly to clinical practice, leadership, advocacy for patients and the profession, evidence-based research implementation and evaluation, and nursing education (Sevy Majers & Warshawsky, 2020). I agree that DNP-prepared nurses are among frontline healthcare personnel with firsthand experience in healthcare delivery. Among their leadership roles is healthcare cost management and control. DNP-prepared nurses should be well-equipped with budgeting intricacies, healthcare insurance, reimbursement, and managed care for effective cost control (Duquesne University, 2018). Indeed personnel budgets, including salaries, incentives, and benefits, comprise a significant chunk of the healthcare budget. In most instances, cost reduction begins with managing the personnel budget, which involves identifying variances. Mostly, variances are linked to unexplainable high healthcare costs. Regarding professional development, I concur that organizations should set aside funds to support staff with ongoing education.  (DNP Prepared Nurse Experience Comprehensive Discussion Essay Example)

References

Duquesne University. (2018, July 17). The role of business and finance as a DNP-prepared nurse. https://onlinenursing.duq.edu/role-business-finance-dnp-prepared-nurse/(DNP Prepared Nurse Experience Comprehensive Discussion Essay Example)

Sevy Majers, J., & Warshawsky, N. (2020). Evidence-Based Decision-Making for Nurse Leaders. Nurse leader, 18(5), 471–475. https://doi.org/10.1016/j.mnl.2020.06.006(DNP Prepared Nurse Experience Comprehensive Discussion Essay Example)

Response to Classmate 2

Hello,

Thank you for the great post. DNP-prepared nurses are integral in the Institute of Medicine’s push to have nurses more involved in improving the healthcare system. DNP-prepared nurses’ roles are mainly leadership, including budget control (Bekemeier et al., 2021). Taking an executive or leadership role requires DNP-prepared nurses to have a comprehensive understanding of healthcare economics. The healthcare environment is increasingly becoming complex, with the need to control healthcare costs, calling for personnel with clinical experience, business skills, and financial understanding (Duquesne University, 2018). DNP-prepared nurses have financial management skills to prepare budgets and control costs and overtime. I agree that particular circumstances can cause variances. It is common for overhead or overall costs or expenses to increase without materially increasing personnel or additional operations. These variances are primarily unexplainable. Therefore, DNP-prepared nurses should be able to analyze financial statements and general revenues and expenses to understand sources of variances. Regarding career growth and development, I agree that organizations that support staff’s continuing education are more successful, and the investment in continuing education is always worth it.(DNP Prepared Nurse Experience Comprehensive Discussion Essay Example)

References

Bekemeier, B., Kuehnert, P., Zahner, S. J., Johnson, K. H., Kaneshiro, J., & Swider, S. M. (2021). A critical gap: Advanced practice nurses focused on the public’s health. Nursing outlook, 69(5), 865–874. https://doi.org/10.1016/j.outlook.2021.03.023(DNP Prepared Nurse Experience Comprehensive Discussion Essay Example)

Duquesne University. (2018, July 17). The role of business and finance as a DNP-prepared nurse. https://onlinenursing.duq.edu/role-business-finance-dnp-prepared-nurse/(DNP Prepared Nurse Experience Comprehensive Discussion Essay Example)